• Bybit CEO has said that 20% of the $1.4B stolen from the exchange is now untraceable.
• Hackers converted $1B in ETH to BTC via THORChain and spread it.
• So far, 11 bounty hunters have assisted in freezing $42M of the stolen funds.

In a stunning update, Bybit CEO Ben Zhou has revealed that $280 million of the $1.4 billion stolen from the cryptocurrency exchange in the February hack has vanished into untraceable channels.

3.4.25 Executive Summary on Hacked Funds:
Total hacked funds of USD 1.4bn around 500k ETH, 77% are still traceable, 20% has gone dark, 3% have been frozen.
Breakdown:
– 83% (417,348 ETH, ~$1B) have been converted into BTC with 6,954 wallets (Average 1.71 btc each) . This and…

— Ben Zhou (@benbybit) March 4, 2025

The security breach, attributed to the North Korean hacking group Lazarus, saw approximately 500,000 Ether (ETH) pilfered from Bybit’s reserves. While the majority of the funds remains visible on the blockchain, Zhou’s announcement underscores the challenges facing investigators as they race against time to freeze the assets before the hackers fully cash out.

The attack exploited vulnerabilities in SafeWallet, a third-party wallet platform used by Bybit. Lazarus hackers compromised a developer’s device, injecting malicious code that allowed them to siphon off nearly $1.5 billion in ETH during a routine transfer.

Despite Bybit’s swift action to restore 1:1 backing of client assets within days, the hackers have been relentlessly moving the stolen funds across multiple platforms, complicating recovery efforts.

Hackers leveraged THORChain to fragment funds

A significant portion of the stolen Ether—417,348 ETH valued at around $1 billion—has been converted into Bitcoin (BTC) and scattered across 6,954 wallets, each holding an average of 1.71 BTC.

Zhou noted that 72% of the haul, or 361,255 ETH worth $900 million, was funneled through THORChain, a decentralized exchange known for its privacy features.

THORChain alone processed a record $4.66 billion in swaps in the week ending March 2, raking in over $5.5 million in fees from these illicit transactions. This fragmentation and conversion strategy has made tracking the funds increasingly difficult for blockchain forensic teams.

Meanwhile, 20% of the stolen assets—approximately 79,655 ETH—have “gone dark,” meaning they’ve been laundered through platforms like ExCH and rendered untraceable.

Zhou highlighted that an additional 40,233 ETH, worth $100 million, passed through OKX’s Web3 Proxy. Of this, 23,553 ETH ($65 million) remains untraceable without further cooperation from the OKX Wallet team, while 16,680 ETH is still within reach of investigators.

The CEO stressed that the next one to two weeks are pivotal as the hackers prepare to offload their haul via exchanges, over-the-counter (OTC) trading desks, and peer-to-peer (P2P) networks.

Bybit has enlisted bounty hunters amid freezing efforts

In a bid to thwart the hackers, Bybit has enlisted the help of bounty hunters and security firms.

Zhou reported that 11 parties—including prominent players like Mantle, Paraswap, and blockchain sleuth ZachXBT—have assisted in freezing $42 million, or 3% of the stolen funds.

So far, Bybit has paid out $2.178 million in USDT to these contributors as part of its recovery efforts, with more details available at Lazarusbounty.com. The exchange also partnered with Web3 security firm ZeroShadow on February 25 to enhance its blockchain forensics and maximize asset recovery.

Despite these efforts, the hackers show no signs of slowing down. Blockchain analytics firm Elliptic has identified over 11,000 wallets linked to the Lazarus group, suggesting a sprawling network designed to obscure their tracks.

🚨 Free Real-time Bybit Exploit Data 🚨

Elliptic has launched a free data feed of illicit addresses linked to the Bybit exploit.

🔍 Why it matters:

✅ Minimize exposure to sanctions
✅ Stop laundering of stolen funds
✅ Strengthen crypto security

Access via CSV or API ⬇️… pic.twitter.com/U9Qa2tc8Zz

— Elliptic (@elliptic) February 25, 2025

Zhou indicated that an additional $65 million in ETH could be salvaged with OKX’s support, but time is running out as the attackers continue laundering operations through platforms like ExCH and OKX Web3 Proxy.

• The crypto market has crashed, losing $1.01 billion in liquidations.
• Bitcoin (BTC) has plunged below $84k while altcoins like ETH and SOL have slumped 15-20%
• Bitcoin Pepe’s presale offers a compelling alternative with the price set to rise from $0.0255 to $0.0268 in next presale stage.

The crypto market is reeling from a brutal wave of liquidations. Over $1 billion in leveraged positions have vanished in the last 24 hours, according to Coinglass data.

The liquidations have hit traders hard across major exchanges. Bitcoin alone accounted for $396.16 million in wiped-out positions. Ethereum saw $209.58 million evaporate, and Solana’s liquidations reached $70.55 million. Even meme coins weren’t spared—Dogecoin saw over $20 million in liquidations.

The crypto market erased gains made earlier this week

Bitcoin (BTC) has plummeted below $84,000 gain, shedding nearly 10% of its value in a single day. The tumble has reversed its rally past $95,000 earlier this week. It has hit an intraday low of $82,467.24 before stabilizing slightly above $83k.

Ethereum (ETH) followed suit, diving 15% to $2,089, while altcoins like Solana (SOL) and XRP cratered by 20% and 18%, respectively. Cardano (ADA) also plunged 25% to $0.7998 as a majority of the other altcoins bore the blunt of the bloodbath.

Meme coins were not spared either. Shiba Inu (SHIB) and Pepe Coin (PEPE) have dropped 13% and 18%, respectively, while Sonic (S) and Trump-backed tokens have shed 23% to 25,% respectively. It seems the high-risk corner of the market faced unrelenting exits as fear gripped traders.

Notably, the crypto market carnage mirrors a broader market slump, with the global crypto market cap tumbling 10% to $2.76 trillion.

What is causing the crypto market to drop?

Investors blame CME futures gaps and thinning liquidity for the sudden crypto market drop. Analysts point to liquidity gaps and leveraged bets gone wrong as the culprits.

Trump’s talk of a strategic crypto reserve couldn’t shield the market from broader economic tremors; the selloff has erased gains sparked by optimism over President Donald Trump’s pro-crypto moves.

Besides the liquidity gaps, economic factors are also to blame for the crypto crash. Trump’s new 25% tariffs on imports from Canada and Mexico have sparked trade tensions.

Canada and Mexico supply a third of US goods, and the tariffs threaten growth and stoke inflation fears.

Following the introduction of the tariffs, American stocks also tanked alongside crypto, with the Dow Jones falling 650 points. The VIX index also jumped to 22, signaling rising market panic.

Historically, cryptocurrencies falter when fear dominates, pushing investors to the sidelines.

Bitcoin Pepe emerges as a haven for crypto investors

Amid this chaos, Bitcoin Pepe stands out as a bold contender. Pitched as the “World’s Only Bitcoin Meme ICO,” blending Bitcoin’s durability with meme coin flair, the project aims to build a Meme Layer-2 for Bitcoin, promising instant transactions and ultra-low fees. Its PEP-20 standard lets users launch memecoins on Bitcoin’s blockchain.

Unlike the currently bleeding altcoins and memecoins, Bitcoin Pepe is currently in its presale stages, which are structured to ensure the price rises with each presale stage progression.

The presale is gaining traction despite the market rout. Currently in stage 5 of 30, the presale has raised $3,690,133. The current price sits at $0.0255 and is set to rise to $0.0268 in the next stage.

The project’s smart contract has already been audited by SolidProof, offering a glimmer of credibility in a sea of uncertainty.

Interested investors can connect wallets and buy in, betting on its vision of “Solana on Bitcoin” as a lifeline. The project’s whitepaper and roadmap pitch a future where meme coins thrive on the “only chain that will live forever.”

Ethereum has experienced a massive price surge, jumping from the $2,200 level to $2,500 in just a few hours. This comes after a period of extreme selling pressure that saw ETH drop as low as $2,080 on Friday, leading analysts to expect further declines. However, the market quickly reversed following a major announcement from President Trump regarding a U.S. Crypto Strategic Reserve, which includes Ethereum.

This unexpected news triggered a strong reaction across the crypto market, with ETH reclaiming key levels and fueling optimism among investors. The move has shifted sentiment, as traders now speculate on whether Ethereum can continue its rally toward the $3,000 mark.

Top analyst Daan shared a technical analysis on X, explaining that ETH swept all liquidity below $2,100 before bouncing sharply from that point. According to Daan, this move was significant, as Ethereum absorbed the sell-side liquidity and now continues its bullish momentum following Trump’s announcement.

With ETH reclaiming strength, investors are closely watching key resistance levels to see if the rally can continue. If Ethereum holds above $2,500, a further move higher is likely. However, the market remains volatile, and bulls must sustain momentum to confirm a full recovery.

Ethereum Prepares To Move

Ethereum has been facing relentless selling pressure and negative sentiment, leading to heightened speculative activity that leans bearish in the short term. Since late December, the price of ETH has plunged nearly 49%, leaving investors in despair as they await a recovery. The market has struggled to find a strong base for a reversal, with analysts warning that if Ethereum fails to reclaim key levels soon, further downside could follow.

However, yesterday’s rebound has sparked renewed optimism among traders who anticipate a fast and aggressive recovery. Ethereum’s sudden surge from the $2,200 level to $2,500 caught many by surprise, especially after the market-wide downturn that saw ETH dip as low as $2,080 on Friday. This price movement coincided with President Trump’s announcement of a U.S. Crypto Strategic Reserve, which included Ethereum.

Daan’s technical analysis on X highlights that ETH swept all liquidity below $2,100 before bouncing sharply. According to him, this move confirmed that Ethereum had absorbed sell-side liquidity and was poised for continuation. He also noted that ETH is currently in a neutral zone, stating, “We’re in the middle of nowhere as we speak, but that $2.8K level remains important if we revisit it later.”

Ethereum’s next steps will determine whether this recovery gains momentum or fades into another consolidation phase. If ETH pushes toward the $2,800 mark and holds above it, bullish momentum could accelerate. However, if the price struggles to sustain its gains, another round of selling pressure could emerge. Investors remain cautiously optimistic, closely watching Ethereum’s ability to break through resistance and confirm a new uptrend.

Price Struggles Below $2,500

Ethereum is currently trading at $2,350 after experiencing intense selling pressure over the past few days. Despite the recent bounce, the price continues to struggle below the critical $2,500 resistance level. Bulls have been unable to confirm a recovery rally, as ETH remains trapped within a range of uncertainty.

If Ethereum can reclaim the $2,500 mark and hold above it in the coming days, a strong rally could follow. Breaking past this resistance would open the door for a push toward the $2,800 level, which analysts see as a key price target. However, failure to break above $2,500 could leave ETH vulnerable to further downside, especially if bearish sentiment continues to dominate the market.

On the downside, losing the $2,200 support level could trigger another wave of selling pressure. If ETH drops below this mark, it could lead to a deeper correction, with the next major demand zone sitting around the $2,000 level. Investors remain cautious, watching for signs of either a breakout or another leg down. In the short term, Ethereum’s price action will largely depend on whether bulls can generate enough momentum to push ETH back above $2,500 and confirm a sustained recovery trend.

Featured image from Dall-E, chart from TradingView